All Forum Posts by: Jay Dimacali

@Anthony Corrado and @Andres Verney

Hi guys.  It's been a while since you posted about the ALF.  How has your progress been with setting up an ALF?  Has it been worthwhile?  Thanks in advance.  

Jay

@Aaron Godfred

Welcome!  I think most of the areas you mentioned are good just focus on areas that are rent control free (e.g. Glendale, Burbank)  But you will pay a premium for those places.  Like someone mentioned earlier, I would take a look out at San Bernardino and the surrounding areas.  I just closed on a place out there with my group and we should be making much better returns than in the LA area.  And it's an hour away (without traffic!)

Hi Arthur. I opened up a HELOC with Union Bank for one of my rentals. It's helped increased my ROE by investing in TDs. They do the rubber glove test so it's not like getting one from years ago. Good luck!

Welcome.  I'm down the road from you so it's good to see someone local.  My recommendation is to learn everything you can and take all the free stuff you can.  If you go to RE club meetings you'll hear a whole lot of pitches to 'coach' you.  I recommend learning what you can for a year before putting any money down into a program.  Don't get me wrong, they can be worth it.  Just be selective about what you put your hard earned money into.  

As for something free there's a real estate club that I'm a part of.  There's a new owner so I don't know how he is but I would go to network there and learn from what the speaker has to say.  You can pm me for the club information.

Good luck!

Jay

Welcome Alyssa.  I would recommend getting preapproved with a loan broker to see what you can buy.  Then search out areas you would want to live in.  Think of your roommate as an employee.  You can pick who you want and deny the rest.  And I would recommend taking advantage of the $250k/500k tax free capital gains you can make and keep rolling it over to the next investment property and keeping from there.  Just some things I learned over the years...

I've gone to meetings where Bruce Norris talks about the SoCal market.  Based on what he said, even though he won't say it explicitly, is that the LA market isn't in a bubble.  It hasn't hit a peak but the market won't be the same like the last cycle.  Especially with Trump in office who knows where it'll go.  His info is based on different data and graphs and it makes sense to me. Google him and you can find his info online.  

I would have to agree with David's post. You'll have a better chance of cashflow up in the AV area. I did that a few years back and bought at the bottom and got immediate cashflow. You don't get the same appreciation as in the city and you have to drive at least an hour out there to handle issues. But the properties are generally newer. 

Check on rent control as well.  You might not be able to raise your rent to the market level of $900 legally.  

Details:

How did you come up with an ARV of $720k?